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April 12, 2006

Strategic economies

We ended this article the analysis of the different elements that composen a business concept, putting attention to both last aspects that can multiply the capacity to generate benefit. First of them it is in if the model it has some of the denominated strategic economies, mainly economies of scale, capacity to concentrate themselves in a certain niche of market and to become leader or, the other way around, capacity to use resources such to serve to very different markets creating sinergias between all of them.

The strategic economies do not have to do with the best or worse operational execution, but that derives from the own model of business. The second is in the possibility or not that the model is very flexible, essential point in a constant and accelerated economy however. This flexibility can come from the cause that we have a great diversification (of countries, products or tipología of clients) that does not risk everything to a single letter. Another form of flexibility is the capacity to modify with certain rapidity the model, the one that we could denominate like operative agility. Finally, the capacity to arrive in a period reduced of time to its deadlock without it is had to wait for eternities in generating benefits. Really, like we have been shelling in the last months, doing a deep reflection on the business that we are developing, we have many possibilities of detecting elements of possible innovation that allow us to continue being competitive in the future.

Entry barriers

To have a barrier of entrance difficult to surpass on the part of the competitors is another one of the possible multipliers of benefits. If a company sends to the market a concept of really innovating business, is evident that during a period she will be the unique one in developing it.

However, if the model is easily talk backable, it will not have too much time to raise barriers that make the entrance in the market more difficult of other companies. These barriers also can be of exit for the clients, is to say that it is difficult to change to them of company once are had customary to use the services and the form to provide them with a certain company. And because it is a suplicio to terminate itself, like in most of telephone operators of our country, but because the value that provides a certain company to him so is not elevated that it would cost a time and effort to him that is not arranged to invest to obtain the same one with another competitor. It would be the case, for example, of the bookstore online Amazon. In his day, to the being first in attacking with force the sale market online of books, it was able to catch a good part of the consumers, who went accustoming to their system of order and its system of book recommendations based on the knowledge which they have of the client. If a client wants to change of bookstore and to have services such, she will cost a learning effort to him and she will have to spend a considerable time until obtaining the same value. Therefore, those that have come later, have had it enough more difficult.

Capitalising client feedback

Another way to enter the dynamics of the increasing yields is similar to the one of the effect network that we commented in the previous article, but this is in the capacity that has a company to offer a better product as it increases his number of clients. He is the one that we can denominate positive effect of the feedback company-client.

If we have been able to arrive at one first stage of growth in which already a very considerable number of clients is had and the suitable mechanisms settle down to know them deeply and to extract the necessary information, we have the possibility of being able to send to products services that satisfy every better time their necessities and, this way, to still obtain many more clients. Consequently, to manage to raise a second step in the growth stairs. The competitors who do not have this knowledge that provides the volume of clients, hardly will be able to know what improvements must do in products and, therefore, to enter this dynamics. Finally, a company also can enter a dynamics of increasing yields by the fact that its model of business enjoys the effect learning. This situation we found it, specially, in intensive companies in knowledge, that is to say, every time in more companies. If the model has east effect learning, the companies that more quickly obtain the dynamics of creation of more knowledge from already acquired, they raise hardly superable barriers of market by the competitors.

Increasing returns

One of the main multipliers of the benefits occurs if our model of business can enter a dynamics of increasing yields. This situation we found it when a company, as it grows, still has more possibilities of growth, and in addition to exponential form, since the fact to arrive at one first stage from expansion is the one that allows him to initiate one second phase of growth, that simultaneously will allow him to arrive at third and so on.

Those companies of the same sector that are not able to enter dynamics, are suspended. So that a business model has capacity to enter this type of dynamics we must find some of these three aspects: what effect is denominated network, the fact that is a model that retroalimente he himself, or that exists an effect of learning or increasing acquisition of know-how. The effect network we found it in business models that contribute more value to the clients as there are more clients. Any product of communication (telephone, moving bodies, fax, email etc.) it has effect network. If only there is a person who uses them they do not have any value. However the value increases exponentially as the number of users of the system is increased. Another example, in this case speaking of Internet, we at the moment found it in virtual communities, vestibules of classified announcements or the vestibules of contacts, so fashionable. In all these cases, as it increases the number of users, the value that can be offered increases, which causes that they can grow more still in number of clients.

Profit multipliers

Once analyzed three of the elements that cause that a business concept has capacity to generate wealth (efficiency, exclusive feature and coherence) we entered to analyze the fundamental element of this capacity. One is the multipliers of benefits that can cause that the yields go off dice in a while and, consequently, is worth the trouble to assume the risk of taking the concept ahead.

When we spoke of multipliers of benefits, we spoke of four great areas that we will analyze with more thoroughness in the next articles and that do that companies of recent creation like Google, Amazon, Ebay, or Meetic, to speak of companies that use the Network mainly, can spectacularly be beneficial in relatively short periods of times. First of them it has to do with a very determining concept of the economy in network and the intangible ones: the increasing yields. The second multiplier is based on the capacity to construct entrance barriers that they block to the competitors during a time. After all, if we have innovated and the model is successful, we will have the monopoly of the market by a brief period of time and, in the measurement that entrance barriers exist, this period will be longer. The third multiplying drift of the existence in the model of strategic economies (of scale, specialization or generalization). Finally, and essential in an economy in constant change, the fourth multiplier comes defined by the strategic flexibility from the model, is to say the possibility of changing on the march if therefore it requests the market.

Business concept coherence

The third element to value the capacity of generation of future wealth of a business concept, along with the efficiency and the capacity to be unique, is the degree of coherence of its internal elements (mission, vision, processes, reach of market, form to arrive at the objective public, etc.).

We must determine that all the elements of the model fit between if, they are coherent and that each one of them contributes to reinforce the obtaining of the global objective. In order to determine the degree of embroider of the elements we will be due to make questions how: the form is coherent to communicate our product with the public to whom it goes directed; it is it the form to unfold our service with the message that we have given at the time of selling it. The other day read a person to complain which in a well-known luxury article store, at time of reductions, a great tail in the street was created, since it was not allowed to enter more of a certain number of people to the establishment. This tail, in addition, was guarded by some guards of security contracted by the company/signature. In this case, we could be asked if he is coherent that a mark of this style, that sells "glamour", style of life and elitismo, allows that their clients make tail of way very little "* glamourosa". Or if it is it that a model of business based on that the buyers pay the highest price, not as much by the product in if same, but by the exclusive feature, it makes period of reductions. It is only necessary to be made some of these questions to find incoherences in many of the prevailing models.

Business concept exclusivity

The second element to value the capacity of generation of future wealth of a business concept (first it is the efficiency) is in the fact if the model he is unique or no. If it has discovered a new industry or a new market that had before not been explored. If it has developed a totally new form to arrive at the clients. If the execution of the model is totally innovating forehead to the traditional way to act.

In the measurement that a company develops a model of business similar to the one of other companies, the capacity from which the yields are very different is small. However, if the new concept is unique in a better form to provide value to the client, the possibility of an important differential in the capacity to generate wealth in front of other companies of the sector can be impressive. If we acted in zones, to say it somehow, already explored previously, the maximum that we can obtain is to scratch a part of the market, if we are something better than our competitors. Otherwise, if we dedicated ourselves to work the zones nonexplored until the moment, we can be first in finding market areas that will provide important yields to us differentials. That yes, only during a time. Until the next time that we must return to make this exercise and to innovate the model to find other that is unique. Unfortunately the unique models, logically, let be it when it begins to demonstrate that they are good and other companies develop them.

Business model efficiency

I today retake the analysis of the different elements that compose a concept of business and how we can introduce modifications that more innovators do. Within the group that makes reference to the capacity of generation of wealth of the model, we found like first element the efficiency of the model, is to say if by the product that we do our clients are arranged to pay, direct or indirectly, more money than the one than costs us to us to produce it.

This does not mean that to be efficient the costs must be the minimums, but that is to be in consonancia with the product or service which we are offering, so that the price that we must put does not exceed which the potential clients consider fit to the type of product or on watch that we are offering. A clear example of efficiency of the model is the one of the airline companies called of "low cost", since changing several elements of the process of production of the service and of the conception of the product they have obtained, by a side to have the lowest prices of the market and the other the elevated margins more of the industry. In the same case they are the companies that offer service to the segment of clients who want more comfort and luxury. They have fit its model of efficiency to this segment and obvious their costs more are elevated, but they continue having high margins because their clients are arranged to pay this difference. So that the model is more efficient does not only serve to reduce costs, but to radically change to the concept and the processes.

Inexperts to the power

With regard to the idea that it developed in the previous article with respect to which the greater innovations cause cabreada people because it has had a bad experience in the form to work of some product or service, yesterday explained a history to me that has much to do with it and that, lamentably, still is normality.

It is the history of an entrepreneur who has a business idea to do of totally different form (and better for the user) a process very established in a sector in which a spectacular transformation is taking place, the one of the civil aviation. Then it is that this person, who surely had the idea after cabrear itself badly by the operation of the process, has problems important to find financing to develop this project. And which is one of the reasons? Not to have experience in the sector. Some (many) follow with inertia to think that one of the bases of the success of a business idea is that a person with deep knowledge of the concrete sector proposes. Then no, to innovate, more than an advantage this is handicap. The great changes normally come from people totally other people's to a form to work "normal" and that, this way, they do not have prejudices, and they can construct better from zero a model. From the radical innovations come here. Of people who ask themselves: how it is possible that this can work asi '? And it mounts a more obvious system, simpler and than it is not indebted of established practices or privileges.

Innovative ideas

There is an idea from Tom Peters which I find very interesting: the one of which often the people whom have innovative ideas are people who are very angry. Displeased people with a service, that thinks a new better or more efficient form to make it. Cabreada people because she does not find the product that needs and create it. People who find the institutionalized way absurd to make the things and change it.

And today this idea comes to me specially at the top because I have east type of climb. I am cabreado by the fact that making the passport to my son, in 2005, it has had to lose mid-morning in the Civil Registry to obtain a "slip of paper" written by hand to take it to another organism of the Administration, that would have to be able to directly obtain it with the access to a data base centralized or shared. I am cabreado because a civil employee changed the name simply to me being mistaken introducing data in the computer, but so that they rectify the error I must demonstrate with fehacientes tests my real name. I am cabreado because when the administrations want share data of the citizens, but to serve better, no. Even so, I cannot solve this climb creating a new and alternative Administration. They are those that work in her those that they would have to do something. And the problem is that in all the places of which I speak I have seen cabreada people, yes, but not indeed because it is worked of a way it infuriates of century XXI and the possibilities that we have to our reach.

Innnovation entrepreneurship

I close this reflection on (the in)cultura to undertake in our country with an aspect that, more than one more a leg of a social system oriented to the enterprising culture and the innovation, is the essential foundation. I believe that he was the present President of the Generalitat that said that three of their priorities of government were education, education and education.

Then in the subject of the enterprising culture the priorities would have to be education, education, education, education and education. Education to our children so that they have a creative, innovating and enterprising mentality - to not only create companies -. Education to the investing futures to understand the value of the ideas over the money and that the investments, aside from personal monetary yield must also produce social yield in form of general value and wealth. Education to that they will have to decide investments of capital risk and in great companies in the mentality gain-of winning and of the collaboration over the one to take it everything to it and to absorb. Education to the managing futures public in delimiting the space in which they can really contribute value. And, finally, education for which is to educate our daughters. Because after all, as a person of the sector of education said to me kill a time, how it is possible to be educated in the enterprising mentality if those that have it to do not have it. As I always say, the future on the Catalan economy within twenty years she depends more on the Conselleria de Enseñanza that of the economic ones. We will understand it sometimes.

Entrepreneurship culture: public venture capital

One fourth leg of a system that creates innovating companies must be, at least in Europe by its special idiosincracia, a sector of capital powerful public risk. However, the capital public risk would not be due to move such exactly by criteria that the capital deprived risk, as too many times it happens.

In the previous article it spoke of an interesting case, a private bottom created in the city of New York with the objective to harness the diversification of the economy of the city. A bottom at the moment equipped with more than one hundred million dollars and the objectives with which they are, by this order of importance: to invest in projects that generate tangible benefits for the city and its groups, and that the projects in which it invests impel a competitive advantage of the city in the global economy. Finally, and obvious, that the projects are viable and profitable, clear it is. But this it is not the main criterion, even invest in projects without profit eagerness. This philosophy is, at the present time, unthinkable in bottom prevailed in Catalunya (if to that exists we can give this name them), since they look for exclusively the factor yield, totally reasonable criterion in the private capital. Not to mention the numbers of capitalization, that would give laughter compared with the mentioned ones. But that would have to be the philosophy of investment of the bottoms that nourish of governmental capital, since the objective of these bottoms would not have to be exclusively the capital gain in the investments, but * objectivos ones with one more a more global vision and of long term.

Innovation capital

In two previous articles I have spoken of (the in)cultura to undertake of two basic groups for the creation of innovating companies: those that must have the idea and the impulse to put it in march and those that would have to contribute at the first moments to finance these initiatives. Another one of the fundamental pillars of a system that creates companies is the one that we could say, generalizing, "capital deprived risk", that it would have to be constituted by the great financial groups and great local companies.

Of the mentality of these great groups a conversation can speak that I recently had with a friend mine who has responsibilities in the areas of investment in innovation of a great bank. When I complained which they did not invest in capital risk, she explained to me that that did not interest to them, since if detected some innovating initiative preferred to buy it directly. The idea came to be: why we have to invest and to help to that the one is covered that has had the idea? We preferred to cover. This mentality it I by personal experience at the time of negotiating enterprise collaborations with local groups can also certify. Let us compare this mentaliadad with the experience that I have been knowing first hand for one week in New York. There 10 years ago a investment fund of capital risk deprived with the intention of fortifying was created and diversifying the economy of the city. 67empresas participated that invested million dollars each one. Thoroughly lost, without waiting for financial return. Almost just like here, right?.

Business angels

The week last Dossier Económic echo was made of a study that states the slope in the enterprising initiative in our country. At the same time I initiated a series of articles on (the in)cultura to undertake in Catalunya. In fact he was totally accidental, because still it did not know the study, but I believe that which it wants to see escapes to him that the reality is very different from the official speech in which "we have columpiado ourselves" during the last years.

I follow with the second ilustrativa anecdote of I say it. A friend mine is the director of an office with strong growth of one of the main Spanish banks and in a dynamic zone of Barcelona, with wealthy clients. A day, eating with him, explained him that always it had had the idea to create a project that invested in really innovating ideas and that they transform the markets radically where they must compete and I asked to him if he, by the knowledge that he has of the profile of his clients, thought that they could become "* business angels" of these innovating types of business. Still it is being laughed heartily. It said to me that if spoke to them of Google or Yahoo! probably nor they would know what is. Now, that could teach to me very well like multiplying the money giving entered for floors that never will get to buy. While in this country we do not have "business angels" which are made millionaires contributing money to innovating companies and that creates social wealth, but "tocho angels" that is done millionaires speculating with the house, our sky will follow very "are bricked".

Innovation and entrepreneurship

It seems interesting to speak to me of the state of the emprenededora culture in our country, as a result of some conversations that recently I have had on this subject. They are anecdotal, but I believe that they reflect our general culture, beyond autobombo of the speeches of our politicians and other actors respect to this subject. And when I speak to undertake I do not speak to mount a bar, although also it is possible to be innovated in this field.

The first conversation reflects the vision of that, supposedly, they would have to be source of enterprise initiatives and comes from a conversation with a well-known one, as a result of a network project in which it is becoming jumbled to Catalan of the world of the company of all parts of the world. This person commented to me that very she was interested in participating in the project, although she "did not have anything to do with the world of the company", since she is in the academic world, investigating. She is that this person is making investigation on computer science languages in the department of computer science of a university, but she creates (of good faith, it is the prevailing culture) who the company is in a world aside. And I ask myself, is that Page and Brin, founders of Google studied creation of companies? Or rather was two engineers doing a doctorate and investigation on algorithms search in Internet? How many possible Google, Yahoo! or Linux must have crossed the mind of our "academic ones" and there are lost by ours (in)cultura to undertake?

Wealth generation

In the last articles we have been analyzing the different elements that compose a concept of business and how we can be refexionando on each one of them with the objective to introduce modifications that more innovators do as a whole. Even so, with this it does not have is enough.

A business concept must by objective become a model that can be implanted actually, is to say that it is possible to be developed in the market. And to do this it must know very clearly as he will be able to generate income and benefits, or in the short, half or long term. We could define as the capacity of wealth generation. Several factors exist that affect the capacity of generation of wealth of a business concept. First it is the efficiency of the model, is to say if the way which we must to provide value to our clients is efficient or, in other words, if the value that our clients can give him to which we do exceeds the cost to do it. A second factor makes reference to if our model is unique or we do the same one exactly that makes all the companies of our sector. A third element, to which we can denominate "coherence" depends on if all the elements of the business concept fit and have coherence with the objectives. Finally, a fourth factor, fundamental, has to do with the capacity that has the concept of concrete business to generate "multipliers of benefits" that allow to grow and to generate yields over the competitors.

Strategic alliance

The last one of the elements that we will analyze within the concept of value network is the one of the alliances or coalitions of companies. Let us remember that all the elements of the value network (strategic suppliers, suppliers, partners and, finally, alliances) have quite diffuse conceptual limits and that often they are overlapped, depending on the situation specifies that we analyze.

We could say that in the case of the alliances (unlike which happens when we spoke of partners) all the companies that comprise of her share so much the risk as the responsibility to take ahead the mission in equality of conditions or, at least, in the proportion to its real participation in the business. The most typical case of this type of coalition occurs when it is necessary to open or to create markets in which, although the gains can be enormous, also are it the necessary investments and the assumed risks, which makes that a single company, by great that is, cannot assume it. Another type of alliance or coalition we found it when several competitors need to put themselves in agreement to solve a problem that affects to them to all in its business, and which if they tried to solve each one by their account would assume a risk or costs too many high ones. In this case, the alliance between all facilitates to create a market in which later everyone will develop its concrete strategies to catch most possible one. Indeed when one is very innovating models is when the alliances can be more useful, since they reduce the assumed risk.

Partnering

Following in the scope of the value network, we found a concept in the last emergent years and that, sometimes, badly have been used. It is the concept of "partner". On the one hand, the line that separates the concept of strategic supplier of the one of a conception of "partner" is very thin.

We would be speaking of the situation in which "partner" it produces goods or services that are integrated in the product. We could say that, in this case, "partner", unlike the strategic supplier, it would assume some type of risk in the business. It would be the case of the supplier of components that, to obtain a future contract, participates and shares the risk of the development of a product. Or the one of the supplier of services to clients of another company, that has a participation in the yield of that concrete service. It is evident that the relations, in these cases, must be different from which we have with the suppliers, although are strategic. Another scope of the concept of "partner" would be the one of all those companies that offer complementary services to our product, which they cause that it can have greater acceptance in the market. A case we have it in the manufacturers of enterprise software, who need to create all an enterprise network to partner (developer, implantadores, support) and to create good relations with them, since on this fact the greater implantation of the product in market depends. The two conceptions offer great possibilities of creativity and innovation to improve our competitiveness.

Value chain

Within the concept of value network the first element that we found is the one of the suppliers. From the way as we managed the relations with our suppliers can be derived innovating initiatives in our model of business. In fact, we could say that to define a strategy in this field it is a fundamental aspect for, like minimum, to cause that our present model continues being competitive.

More and more, the suppliers not to only provide productes and services us that are integrated in our chain of value, but that many of them enter direct bonding with our clients, acting in our name, probably without not even the client realizes. Often, although they are external companies to our organization, appear to the eyes of our clients like part of the value proposal that we offer to them and, therefore, the client will not differentiate if its dissatisfaction is responsibility ours or of the supplier. This way, it is essential to establish strategic relations in the long term with those suppliers that, the redundancy is worth, are strategic for the development of the business concept. In each company the scopes will be different in which there are suppliers of this type and different the schemes from collaboration to establish with them, but what is clear is that this concept is in deep transformation and becomes a class of "partner more and more", figure of which we will speak in the next article.

Innovation network

A fourth group of elements that form the business concepts is that that we could denominate like the "network of value" that turns around the company. The concept of value network talks about to all those necessary activities for the development of the business model, or are internal or external, but that are not made by the own structure of the company.

If until it makes few years the size of the network of value in a business model were relatively small in comparison to the size of the structure of the company, more and more models are formed in which, indeed, the more important dimensonal part is the value network. This circumstance has much to do with the increasing possibility of integrating different collaborators in a same chain from value, for example through the TIC Within the value network we found so much the traditional suppliers, as those that or we were used to denominating "partners" using the English word, or any other type of collaboration that the company establishes with external organizations to improve its development and to increase the value that offers to its clients. Without going more far, when we called to the service twenty-four hours of our mutual medical one, most probable it is than that answer to us does not work for the mutual one, but for a company that comprises of its network of value. Of the importance fundamental to weave a good network of value here so that our model is successful.

Price structure

The structure of prices of our products and services offers to us, probably, one of the most interesting elements to introduce innovations in our model of business. This circumstance we have been seeing it of increasing form and in different sectors in the last years.

Mainly as a result of the appearance of Internet, that a culture of the gratuitous thing consecrated from the beginning, the companies of this sector they have had to implant creative structures of prices so that the user only pays by what he has the sensation of which really must pay (for example the case of < to href="http://www.skype.com">http://www.skype.com, recently acquired by < to href="http://www.ebay.com">eBay, another innovating model). Many are systems that are not new, since the radio and the opened television in implanted them many years ago. In this system, those that pay by the services of the company are not the users, but the advertisers. Other sectors, like the one of the telecommunications, are evolving constantly in their structure of prices of the services that offer (flat, tllamadas tariffs and Internet integrated, etc.). But also other ways exist to innovate, like the lawyers and consultants who work with new companies and receive their services in form of accionariales participation. If to all this we added that, more and more, many products become simple instruments of the benefit of a service (movable telephone, car, etc.) it is evident that in this scope we have a very open field to the innovation possibilities.

Client relationship

The dynamics of relations that we establish with our clients is another one of the elements of the form how we interacted with them. Marketing goes less and less oriented to the specific transaction and more and more to maintain a relation continued and lasting with the clients, who allow us to maximize the operations that we will do with them throughout a period of expanded time.

Therefore, the dynamics of our relations with the clients becomes a key element of our model of business. How we can improve the experience of interaction between the clients and the company - one is the acquisition of products or of the benefit of services with the objective to create a loyalty feeling that is reinforced with the passage of time and as more transactions are made, it is a fundamental question that we are due to do and to solve. Only thus we will be able to create barriers of exit in a more and more competitive market and where the concrete products are different less and less. With a more and more demanding consumer and extreme facildad of change, the establishment of a suitable dynamics of relations will help us to that when arises some problem - inevitable -, the affected client gives another opportunity us. To generate bonds sentimental or to define new ways of interaction company-client in the benefit of services or the process of product purchase, in which a greater value is provided, is some of the innovation challenges that the companies have in this scope.

Knowledge about our clients

Several times I have commented the capital importance to have the maximum knowledge of our clients and potential clients. This it is a key element for the configuration of our form to interact with them and, therefore, of our concept of business.

To have this deep knowledge can allow us to devise new and innovating ways to give service to these markets in anyone of the other elements of our model of business. But this element also has the complementary slope. I talk about to what information has our clients of the company and our products, and why routes can obtain it or we are being made it arrive. In this section, without a doubt, we are in a while in what many companies are sending to the market innovating forms in the form that we have the consumers to accede to the information on its products, of its availability and of all the alternatives which we must to improve our process of decision and buys. Obvious Internet and the TIC have facilitated enormously the capacity to introduce this type of innovating approaches. But if there is imagination, creativity and will no to modify the concept, the technologies serve little as good. For example, he is not the same one to accede in a single page to the information of all the flights and tariffs of a period of two weeks to be able to choose the one that agrees to you more since it makes an airline company, that to request day to day and hour to hour, the price of the specific flight, since they do others. The technology is the same one, the concept, no.

Innovation marketing

The form that we must to arrive at our clients and potential clients determines and forms one of the elements of our model of business. To analyze it to introduce changes that differentiate us from the other companies and they allow us to arrive from one more a more imaginative form and innovating to our market it can mean a great difference in the development of the business.

It could be that our product is fantastic, that is necessary, that the cost is not a barrier or even that is gratuitous for the client, but that we have still not found the way optimal to place it before the eyes of the market so that it is acquired. Or that we have not given with the suitable format of the service so that he is attractive. Or that the channels that we are using are adapted for the necessities of the market. An example of innovating form to arrive at its potential market is the development in agreements that determined ONG have made with some chains of restaurants and hotels so that to the client, at the moment for paying the invoice, the possibility is offered to him only of doing a small donation (euro or two) to the ONG marking the corresponding square. Perhaps that with the traditional way to arrive at the market, when seeing the announcement awoke the needed one to help to some of these ONG. But to materialize it already is more complicated. But if the will exists, what there is easier that to mark a square to give euro to a ONG of aid to the needed ones in the same invoice in which we have been spent a few to have supper more.

Clients

In the last articles I have been describing and analyzing a model (based on the one of Hamel) of "deconstrucción" of the concepts of business in different elements, to be able to analyze them in depth and to introduce, in case that it is possible, scopes of innovation in each one of them.

Let us remember that the first group of elements (strategic nucleus of the business) makes reference to the last aim of the business - mission -, what we sell, to that and where - our proposal of the proposals of the competitors reaches of the product and the market and to how difference who attack the same market - bases of differentiation -. the second group of elements integrates those that consider necessary strategic resources so that the company carries out its business. Within this group we spoke of the activities that the company knows to do very well and they differentiate it from the others - nuclear competitions -, of those elements of the assets that are essential for the business - active strategists and of basic the nuclear processes for the development of the activity. There is a third group of aspects that we will begin to analyze from the next article, and that make reference, in general, to the form that we must to interact with the clients. The elements that form this group are the form to arrive at our clients and potential clients, what information we have of them, how we were related to them and, finally, an element who can be, with creativity, an important source d'innovación: the structure of prices.

Process innovation

The last one of the elements that compose the strategic resources of the company is formed by the different basic processes that the company has developed with time. When we spoke of processes we are speaking of all those activities that take to that the company develops its business.

A company can be excellent in its process of production, in its process of investigation and development, in some process of benefit of the service or in any other process in which its activity can be divided. Or in how many simultaneously. A source of innovation in the business concept can come from a radical reframing of some of the traditional processes of the company or from a sector. Reingeniería would not simply be tried to make one to optimize the processes, but to reframe themselves deeply how the things become. We could be asked for example, if a good part of the processes that now realiamos inside l'empresa could not be executed, for example, by the own clients. If to reframe itself what becomes can be a superb source of innovation, it is not it less to reframe itself how one becomes. In its day, < to href="http://www.dell.com">Dell totally changed to the process of manufacture and distribution of personal computers. Companies as < to href="http://www.vistaprint.com">Vistaprint is doing it in the sector of the graphical arts. Surely that we also can devise a way totally different to conceive the processes in our sector. Better before they do others and we lose our market.

Strategic assets

The strategic assets are that set of goods, tangible or intangible, which the company has been generating and which have become essential to develop a competitive advantage in their market. We would be speaking of real estate patrimony, machinery, patents, marks, know-how, data bases of information of clients, etc.

Many companies have defined innovating concepts of business or simply they have developed complementary activities hers imagining a use different from those strategic assets of which already they diponían and that therefore allowed it. Bookstores that become coffees using their ample premises, concert halls that become seats of conferences, banquets and conventions, or networks of powerboats that generate chains of stores of convenience like business that this infrastructure uses, serian some examples. Our present strategic assets can be the base of innovation in our own sector or to serve to develop new concepts in other sectors. In this sense, we will have to begin to make a listing of all the assets of this type that has the company and to reflect on a what uses we could destine them, that they allowed us to innovate our model of business or of developing new models in markets that we had not worked. After all, with imagination, many of the changes that occur in the market and which at first they are possible to be seen as a threat, can be reconverted opportunities.

Core competencies

There is a second group of aspects relative to the business concept that makes lack analyze with depth to establish if, through its involution or modification, we can develop a more innovating model. It is what we can denominate strategic resources of the company, that they include the core competencies, the strategic assets and the nuclear processes.

Core competencies have to do yet what the company knows to do very well, that knowledge only and differential respect to the competitors and whom an important barrier for other companies supposes that they wanted to attack the market. In fact, nowadays there are more and more companies that are concentrated in developing to their activity in these competitions, making all the other nonstrategic through alliances or "partenariados" activities with other companies. In this sense, we will have to reflect sore if the unique competitions and abilities that our company has developed throughout the time serve to us, for example, to attack other sectors or businesses on which the traditional actors are based on very different competitions and a philosophy. If we have already implanted a model of innovating business in some sector, is possible that we found other sectors in that, with the same philosophy, we pruned to develop concepts that revolutionize the traditional form to work. A paradigmático example we have it in the companies created by the founder of Easyjet, that being based on the philosophy "easy" has been revolutionizing different sectors.

Value proposition innovation

The third element that conforms the strategic nucleus of the business concept is related to the set of aspects that allow us to differentiate to us from our competitors. In this case, we would have to analyze deeply which is the proposal that makes the company to the market and, if it is it, in what is different from the rest of companies that attack the same market.

In this scope, the bases to develop the innovation in the model can come from one or more from the diverse dimensions of the business concept that we are analyzing articles in the last. We already established that the base of the differentiation of a company can be in an approach totally different from the traditional one from the mission of the business; or to serve the same product with the variations that make lack, to "not attacked" public until the moment. But the innovation also can come from an organization different from the company, of changes in its basic processes, the form to manage the alliances, of the way to manage the relations with the clients or of a radical change in the structure of prices. And more and more, transforming the product into a service, which the physical product becomes a simple complement of the benefit of the service. In the measurement that of this analysis we have the capacity to be imagining bases of differentiation in each one of the elements that conform the business concept, we will be able to construct a model innovating and different from the existing ones.

Innovation in marketing

To analyze the reach of the product and the market, within the strategic nucleus of the business that already we defined, is the following passage in a process of introduction of innovations in the business concept. In this point which we must define it is at what types of market (objective public, geographic segments, scopes) we are arriving with our present products and what type of variations we could introduce to extend the market, to devise new uses, to arrive at different segments, or to sell other products to the traditional markets.

At the moment our products are satisfying a series with concrete necessities for concrete clients, whom, in principle, the company will have defined. But we must preguntaros, for example, if such products that we are commercializing, could satisfy other necessities with the same market or different markets from which the company still has arrived never. Or if changing some characteristic of the product we will be able to sell it to public and segments to which until the moment nor it had been happened to us which we could attack without this new approach. Or if by our exhaustive knowledge of our present clients we could commercialize products different from the traditional ones from the company, by the fact of to have obtained a continued loyalty of the clients. As it is possible to be observed, from the deep analysis from where our products and our markets reach at the moment and from the alternatives our, they can derive interesting innovations in the concept of business of the company.

Innovation strategy

The first group of aspects to analyze as far as the model of business of a company is the one that we could denominate strategic nucleus of the business. This nucleus comes determined by the mission from the business, the reach of the product that commercializes the company and from the market to which it serves, and the capacity of differentiation that allows him to compete with other companies in the same market.

The definition of the mission of the business, that is to say, those last aims that we try to obtain with the development of the activity, are a basic piece that must be defined very well, since in another case (and supposing that we always act in agreement with the defined mission, clear this ') the possibilities can limit us of developing innovating concepts. It is not the same to have like mission "to make arrive an excellent education at all the population" that "to develop schools of quality for all the population". The second exposition concentrates to us in the form since it is made at the moment and it closes the doors to think to us about possible innovations derived from different models to make arrive the education. On the other hand, of the definition of an innovating mission, of an approach different to see a certain sector, a completely new concept can be developed. Let us think about which probably defined like mission something how "that to travel in airplane is within reach of everybody" instead of the traditional mission "offering the best service to our passengers", and of how this new approach has changed the sector radically.

Business model innovation

Since or I have commented several times, I am of the opinion from which the greater innovations come normally associate to the shifts of concept or paradigm more than to new technologies, although these are a necessary instrument and often essential pair that can be produced the change of concept. In the case of the enterprise world, those would come from the changes in the concepts or models of business, since I have come analyzing in some scopes and sectors in the last articles.

This means that, when a company sets out to begin to innovate, which would be due to raise in a first place is which is its model of present business and as it can introduce innovations. The business concept, although often is associated exclusively to the model of income, that is to say, as it makes profitable the company its activity in form income, in an ample sense includes a very great and diverse field. It goes from the definition of the mission of the company to the way to articulate the necessary alliances for the development of the activity or the way to organize itself. One of the first steps that must make a company that it wants to innovate its model of business is, say it with a word that is fashionable, "to deconstruir it", to divide it in the different elements of which it is made up, to analyze them, to see how they are possible to be introduced innovations and to be returned it to construct, defining, if it is necessary, a new concept of more innovating business. In next articles we will be shelling these elements and analyzing what aspects we can innovate in each one of them.

Blogs

Finalizing with the analysis of innovating models in the elaboration and publication of contents, we needed to analyze a way to spread information in Internet that has been increased of spectacular way in the last years. One is "blogs", is to say to ship's logs or personal newspapers

By means of very simple software tools, the users of these blogs can publish in Internet their personal reflections over which he happens in the world, over the subjects that interest to them or, even, to develop an own journalistic system analyzing the news that happen to in his enrno and publishing true alternative newspapers. There is no the minor I show of doubt that this publication form has begun to revolutionize the diffusion of the present time information, since the days have finished in what we only could accede to how many average ones to know few versions the reality. Now we can accede to practically limitless versions of the reality. This causes a series of complications and complexities, but it is that the world in what we lived is more and more complex and we must ourselves accustom and adapt to us. Evidently, the defenders of the traditional model will say to us that many of the things that circulate in Internet are false, interested, distorsionantes of the reality, little contrasted or manipulating. And they are right. But to only he needs us to ignite the television, to oir the radio or to read any traditional newspaper to know that in these average this he does not happen, right?.

Barriers to change

Before continuing with the analysis of innovating models in the elaboration of contents, today I will explain an anecdote that has spent me this week and that is very reveledora of the mental difficulties that exist at the time of developing new models and to break inertias, schemes and the prevailing forms of operation.

We had to present/display a documentation relative to one project of one of my clients, who are within a program of institutional support to the use of the new technologies in the enterprise scope. The project has to do with the development of TIC - and Internet in individual in the strategy of the company, in such a way that most of the processes of management of the clients takes place of virtual form, maintaining and increasing the satisfaction of the client at the same time who optimizing the resources dedicated to these processes on the part of the company. The documentation that must appear in these cases is exhaustive, with explanatory memories and other justificatory documents. Then, at the moment for presenting/displaying it, they said very amiably to us that so and as we took it would reject it directly. And so that '? we asked ourselves. It lacked the strategic plan? It lacked a bar code? It lacked one signs digitalis? Then no, which lacked was the seal of the company in the presentation instance. Yes Sir, in the heat of century XXI does not let itself present/display a project to develop the new technologies in the company because a company does not have a as new technology as a rubber seal. As we said, inertias weigh too much.

Content management and publishing

Other innovating models in the philosophy of management and publication of contents are those portals or virtual communities in which the publication of articles and works is free and does not happen through any previous process of "qualitative" filtering of publications, but that are such readers those who are filtering the quality of the authors, who are created a name and a seal of quality based on which they publish.

Portals like Monografias < to href="http://www.monografias.com">Monografías, < to href="http://www.gestiopolis.com">Gestiopolis, < to href="http://www.ilustrados.com">Ilustrados and virtual communities as < to href="http://www.sappiens.com">Sappiens to speak of the Castilian linguistic scope (although the last one also it is being developed in the English scope) uses this approach. The philosophy that bases this innovating publication form of contents is that no "expert" is able to suitably filter the quality of all the contents, and that in the traditional system only publish those that has been able to enter the status quo, that they do not have because to be those that have more and better things to say (you remember the experiment that explained in the previous article). This philosophy is the against the present one, that I always summarize with an example: for 25 years, to people as Bill Gates probably did not let to him publish nothing, that is when it had new things to say. However, now that everybody listens to him, probably no longer it is saying nothing new. With the alternative publication system all have voice in the global world, whenever somebody wants to listen to them.

Content creation

In the previous article it spoke of which still they defend that the good contents only can be made by "experts" recognized "officially" and filtered qualitatively by other "experts" of the place where they are published. And they reject the credibility of the contents that do not pass this process of supposed quality and, therefore, consider that the new publication models more, to say it somehow, "democratic" (participativas encyclopedias, free publication vestibules, blogs, etc.) they are, to per, of less quality.

In order to refute "the official" model, that is based generally - on prejudices and "an elitist" philosophy, it has been only being necessary to put attention to a ilustrativo experiment made for some years by psychologists Peters and Ceci, whom the philosopher relates Jose To Marina in his interesting book "failed intelligence" (Now Books, 2005). It is that they chose twelve articles written by members of the most prestigious departments of psychology of the United States and that they had been published in twelve prestigious magazines, and they reenviaron them to the same magazines. That yes, before changed the names of the authors and of the universities by imaginary names and, we say, of little prestige, like (me the invention) Psychological Center of the Dry Valley for the Human Treatment. Then, only three magazines recognized articles. And of the other nine, eight were rejected by the same magazines that already had published them because, according to them, they d